Business Loan Calculator
Estimate the monthly repayment (EMI), total interest, and total cost of a business loan. Enter the loan amount, annual interest rate, and term in months to plan your financing.
Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
where r = annual rate / 1200, n = term months
Total Payment = EMI × n
Total Interest = Total Payment − Principal
- EMI (equated monthly instalment) spreads the loan and its interest evenly across the term.
- EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate (annual rate ÷ 1200) and n is the number of months.
- Total payment = EMI × number of months; total interest = total payment − principal.
- A longer term lowers the monthly EMI but increases the total interest you pay.
- This assumes a fixed rate and excludes arrangement fees, insurance, or early-repayment charges.
200,000 at 12% over 36 months
Inputs
- Loan Amount: 200000
- Annual Interest Rate (%): 12 %
- Loan Term (Months): 36 months
At a 1% monthly rate over 36 months the EMI is about 6,643, so you repay roughly 239,150 in total — around 39,150 in interest.
Frequently asked questions
What is EMI?
EMI is the fixed monthly payment that repays both the loan principal and interest over the agreed term.
How does the loan term affect cost?
A longer term reduces the monthly payment but means you pay more total interest over the life of the loan.
Does this include fees?
No. It covers principal and interest only. Add any arrangement fees or insurance separately.
What if the interest rate is 0%?
With no interest, the EMI is simply the loan amount divided by the number of months.
Is the rate fixed or variable?
This calculator assumes a fixed rate. With a variable rate, your EMI would change as the rate moves.